Due to Tesla‘s stock price, Elon Musk received the biggest payday for any U.S. executive in history worth $706 million USD.
Musk’s contract with Tesla’s board of directors prompted the payout as he met certain conditions which provided him with 12 tranches, each released when a predetermined set of milestones were achieved. The last obstacle for Musk was for Tesla’s average market capitalization over the past six months to reach $100 billion USD, which was successfully achieved this week. Three other conditions were previously met, involving a $100 billion USD trailing market value over 30 days, $20 billion USD in Tesla’s revenue and $1.5 billion USD in earnings.
With all that being said, Elon Musk now has 1.69 million stock options, which can be bought at just $350.02 USD per share. Doing the math, Tesla’s stock is currently at $768.21 USD so now the CEO can sell his shares to make $706 million USD.
Musk, 48, now sits on a $38.5 billion USD fortune.
Elon Musk has announced that he plans to reopen Gigafactory New York to help produce ventilators for COVID-19 patients.
Gigafactory New York was originally shut down by Tesla in regards to lockdown orders. Musk will open the factory back up after announcing that Tesla would send out 250,000 N95 masks and expend resources for the manufacturing of ventilators for hospitals.
Hospitals are desperately trying to tend to patients in regards to the COVID-19 pandemic. In doing so, doctors are beginning to run out of the resources needed to perform their jobs properly. Musk stated the factory will reopen to make more ventilators available.
Despite the Coronavirus causing the stock market to plummet, many companies seem to be thriving including Tesla. The Elon Musk led company just passed a milestone of producing their 1,000,000th vehicle.
Tesla bounced back from a 13% decline in share price on March 9, only to have shares 10% higher the next day (March 10) as reported by CNBC. Musk took to Twitter to celebrate the accomplishment of Tesla employees as the company’s 1,000,000th car rolled out of its factory.
It seems that Bill Gates and Elon Musk may have some tension brewing as the Tesla mogul took to Twitter earlier to let us know that his recent conversations with Gates have been “underwhelming.” He doesn’t really go into detail about why his talks with the Microsoft head have been so stale but Business Insider seems to think it has something to do with Gates buying an electric Porsche instead of a Tesla.
In an interview with popular tech YouTuber Marques Brownlee, Gates described his new purchase of a Porsche Taycan as a “very, very cool” vehicle. The price point for the vehicle starts at $103,800 and is the first all-electric car from the German manufacturer.
Tesletter, Tesla’s unofficial newsletter tweeted,
“I’m disappointed because a lot of people are going to watch the interview and they are going to trust Bill’s word for it and not even consider EVs. Why? Because Bill Gates is a really smart guy!”
It was only yesterday that Tesla stocks soared $200 to an impressive $969 USD per share in one day. But as luck would have it, the American automaker’s stock price dropped suddenly as it plummeted down by $100 as the market came to a close to about $860 USD per share. This increase in trade volume affected about two million shares in the last few minutes of trading.
What are your thoughts on this drastic increase, then sudden decrease? Are you inclined to buy stock from the company or sell your current stock if you already have it?